Copper North Mining Corp. (TSXV:COL) has closed its previously announced non-brokered private placement offering. The Company raised an aggregate of 2,124,000 Flow Through Shares at a price of $0.13 per Flow Through Share for gross proceeds of $276,120 and 250,000 non flow through units (“Common Share Units”) at a price of $0.11 per Common Share Unit, for gross proceeds of $27,500.
Each Flow Through Share consists of one flow-through common share. Each Common Share Unit consists of one common share and one-half of one non-transferable share purchase warrant. Each whole warrant entitles the holder thereof to acquire one Common Share at a price of $0.16 per Common Share for a period of twenty-four (24) months following the closing of the Offering.
All securities issued under the private placement will have a four month statutory hold period expiring on April 28, 2017. The Company paid finders’ fees of $22,010 and issued 169,310 warrants (the “Finder’s Warrants”) in connection with the Offering. Each Finders’ Warrant entitles the holder to purchase one Share at a price of $0.16 until December 28, 2018.
The gross proceeds from the issue of the flow through shares (as defined in the Income Tax Act (Canada)) (the “Tax Act”) included in the Flow Through Shares will be used on a qualifying “flow-through mining expenditure” (as defined in Tax Act) related to the Company’s exploration project. The Company intends to renounce Canadian Exploration Expenses (as defined in the Tax Act) with an effective date of no later than December 31, 2016.
The net proceeds of the flow-through shares of the Offering will be used for the drilling, exploration and development activities of the Company`s Carmacks Project. The proceeds from the issue of the Common Share Units will be used for working capital purposes.
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